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Sam, Accountant
Category: Tax
Satisfied Customers: 14154
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am paid a small additional pension (£1,000) per annum, which

Customer Question

I am paid a small additional pension (£1,000) per annum, which is taxed at source by Friends Providence at BR rate 20% in Liverpool (I have the P60s) - The tax office in Cardiff calculates my tax code for my main pension and has started adding this £1,000 to its calculation and now says I owe unpaid tax? Can this taxed at source pension be use again to do this?
Submitted: 4 years ago.
Category: Tax
Expert:  Sam replied 4 years ago.

Thanks for your question. I am Sam and I am one of the UK tax experts here on Just Answer.

It should be an either/or situation, That code BR applies on the pension OR its included in the tax code, but not both.

Can you advise when this small pension began - and whether you have also received a tax code detailing BR remains to be applied ? Or have you had a change to this one too

Is the unpaid tax position you advise of, in relation to this years tax code, or next ? Or is it in fact an assessment advising that you owe money (P800 calculation) for an earlier tax year.

Please advise further

Customer: replied 4 years ago.

Thank you for reply,


The £1000 pension began 2008/9 and was not added to tax calculation until 2011/2012 and again in 2012/2013.


It is a P800 caculation for these years and my code has changed to repay tax owed. which is not so if this taxed at source pension was not used in the tax calculation.


Expert:  Sam replied 4 years ago.

Thanks for your response and the additional information

And have you been given credit for the tax suffered on this pension (so £200 of the £1000)

Advise whether you are you over age 65 and have had your tax allowances reduced as your combined income is in excess of
1)£24,000 for 2011/2012
2)£25,400 for 2012/2013

As this could also create unpaid tax.


Customer: replied 4 years ago.

Thank you again


I have not been able to convince the tax lady that this £1,000 pension is wrong to use in my tax to pay calculation I just get 'it is sorted out in the codes'

This £1,000 is the cause of the underpaid tax issue having been used my calculation.

My total pension add up to £18,000 total gross





Expert:  Sam replied 4 years ago.
HI Dave

Thanks for your response

The £1000 HAS to be included in the calculation as it reviews your total income - its a question of whether the tax you have suffered has ALSO been included, if it has not, then you will have to appeal in writing against the P800 calculations - detailing that the tax suffered on this small additional pension has not given you credit for the tax suffered.

But if HMRC HAVE included the tax suffered as well as the gross pension payment, then this is correct and the unpaid tax has arisen from somewhere else - such as state pension or another main pension or employment.

If you wish me to explore this further then please advise
1) A breakdown of income and any tax suffered for each source
2) Your age
3) When any pensions/employment began for each source (if after 06/04/2011)